The gold market experienced a significant decline in prices on Wednesday, with rates falling by Rs 250 to Rs 72,300 per 10 grams in the national capital, New Delhi. This drop in prices can be attributed to a global decrease in precious metal rates, according to HDFC Securities.
The previous session had seen gold settle at Rs 72,550 per 10 grams, indicating a noticeable decrease in the current market value. Similarly, silver prices also took a hit, tumbling by Rs 900 to Rs 90,600 per kg from the previous rate of Rs 91,500 per kg.
Saumil Gandhi, a Research Analyst at HDFC Securities, noted that spot gold prices in Delhi are currently at Rs 72,300 per 10 grams, down by Rs 250 from the previous close. The international market also witnessed a decline, with spot gold at Comex trading at USD 2,316 per ounce, dropping by USD 8 from the previous session.
The downward trend in gold prices could be attributed to hawkish comments from a Federal Reserve policymaker, which dashed hopes of monetary policy easing and prompted an uptick in the US dollar’s value. Silver prices also saw a decline, trading lower at USD 28.95 per ounce compared to the previous rate of USD 29.40 per ounce.
Analysts predict that gold futures may continue to remain range-bound, with traders closely monitoring US GDP numbers and PCE inflation data for hints on the US Federal Reserve’s rate cut path. Despite the current weak trend in gold prices, there is still a likelihood of a rate cut in September, as indicated by Fed fund futures pricing.
